So little did I know...

Discussion in 'General Discussion' started by Doubeleive, Aug 4, 2018.

  1. 08HoeCD

    08HoeCD Resto-mod aficionado

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    All simple interest loans work this way:

    Simple interest is a quick and easy method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

    The one thing that may give you pause, however, is determining how much your money is worth in your checking account, or being applied to other expenditures, versus being handed over to your bank/creditor.

    I've got a loan with only 2% APR, so I'd rather make regular payments at or just above the monthly minimum because the interest on the loan is minimal-----I'm paying pennies to enjoy the financing over time rather than throwing all my cash towards the payment to reduce the principal. It's 'cheap' money.

    We all have to make decisions as to the best use of our funds relative to savings & expenses.
     
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  2. ncpepperman

    ncpepperman Full Access Member

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    Or just pay cash and don't worry about the interest .
     
  3. Doubeleive

    Doubeleive Elite Member Supporting Member

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    ya it would be nice have cash on the spot anytime but at least im credit worthy :Big Laugh:
     
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  4. ncpepperman

    ncpepperman Full Access Member

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    The secret of life Grasshopper is not how much $$$ you make , but how much $$$ you keep.

    Rather than spending $5 a day on lunch for 40 years of your working life, take your lunch, put that $100 a month in the bank at a paltry 2% ( it was 10 % 40 years ago , 5% 10 years ago and on it's way up again) .

    When you retired , you would have nearly $74,000 to pay cash on a Tahoe or even a Denali..
     
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  5. Doubeleive

    Doubeleive Elite Member Supporting Member

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    good advice but some grasshoppers have a peppered past, lol I wouldn't pay $74,000 for anything unless it was a roof over my head, I like to buy my vehicles at about 5 years old after they have depreciated 60%, I have the money to pay this off today but I also use this money for my business and it is a cushion to fall back on if business isn't doing so well as my income can vary widely, I don't mind the payments I set out on this adventure knowing what I was getting into for the most part just didn't realize until recently that I could be saving a chunk of change by paying it earlier than the due date, it was a 5 year loan and I will have it paid off in just a hair over 2 years or less depending on how things go.
     
  6. ncpepperman

    ncpepperman Full Access Member

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    No disrespect intended..... just saying that life goes by quickly and there are a lot of $$$ that go out the window that one might be putting away .

    Good that you discovered that paying off early was saving you money. All too often , folks only care what the monthly is and not the total they are paying.....

    Financed a new 2001 F150 a few months before 9/11. They came out with 0% financing after the Towers but I was stuck with 8%. Paid that sucker off as soon as I could, extra to principle.

    Yes, I hear you about the roof over your head, just some thoughts from an "old" guy who also had a "Peppered" past.......
     
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  7. Doubeleive

    Doubeleive Elite Member Supporting Member

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    ya I keep my cash on hand as much as possible because for me it takes money to make money even though it's not a lot it works for me, I live rather frugally and I get to live in one of the best neighborhoods in my city so my kids aren't walking outside into a ghetto environment, and if I broke my legs and got layed up for a while I could still pay my bills. I learned a long time ago to "manage" my money, now if I could just manage "women" lol and if I could figure out how to invest what money I do have that would be interesting I only see savings accounts giving out 1.85% on a $10k deposit and don't want to necessarily get into a Roth or something of that nature. I would maybe dive into day trading or something but I need a crash course or seminar to figure out which way to go about it so I'm not just giving my money to someone else in trading fee's like some noob
     
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  8. inmypassatlife

    inmypassatlife Full Access Member

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    I'm waiting to get passed this stupid lawsuit from a car accident 2 years ago to invest my assets. A few more months until then
     
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  9. ncpepperman

    ncpepperman Full Access Member

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    The stock market is a good place for long term money. Your safest bet is a Credit Union who is working for their members , not their stock holders like banks. Better rates on savings and loans, check out the CU's on line.

    Good luck with your lawsuit.
     
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  10. Wolfbraid

    Wolfbraid Full Access Member

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    Also keep in mind that as your overall principle is reduced your interest each month will be less for example $7000 balance will have a larger interest payment than a $5000 balance, either way paying early and paying additional towards your principle is an excellent financial choice.
     

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